In 2006, Gateway signed an agreement with Hui that gave Gateway the right of first refusal if he decided to sell PB Holdings. If Packard Bell wanted to be purchased by a third party, the company had to ask Gateway first. Gateway could then enter purchase talks with Packard Bell.

Hui also sold the privately held eMachines to Gateway in 2004.

The acquisition will be a blow to Lenovo, which in early August revealed it was in discussions with Packard Bell over a possible acquisition.

The deal is anticipated to close later this year or in the first quarter of 2008, Gateway said.